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CLIMATE change argues for a close integration of mitigation and
adaptation plans into development thinking.
What requires attention is how countries can
rally their resources towards policies that produce co-benefits for
economic growth and easing global warming.
The Asia-Pacific region, home to a large number
of developing economies and small island developing states, is in a
particularly precarious situation.
Governments need to be keenly aware of the risks
and vulnerabilities they are expected to deal with, and in some
cases already facing.
Increasingly, policy measures to counter climate
change are exacerbating socio-economic risks, for instance the
impact of aggressive biofuels production on food security.
This calls for cautious and informed
policy-making for it is amply clear that neither development, nor
climate mitigation and adaptation, can be sacrificed at the altar of
the other.
A recent major policy initiative that seeks to
mainstream climate change mitigation into development policy has
been South Korea’s “green growth” strategy unveiled in 2008.
The government aims to invest 2 trillion won ($2.7 billion) in the
next five years to advance green energy, and to capture 13 percent
of the green energy global market by 2030.
According to some estimates, the green energy
industry in South Korea will create about 950,000 new jobs by 2030.
Another example is the way energy reforms meet
development objectives, like ensuring the poor’s access to
electricity while prioritizing low-carbon, renewable energy.
Developing countries have more than 40 percent of existing renewable
energy, including 70 percent of solar hot water capacity and 45
percent of biofuel production.
Truly, the challenge of addressing the twin
concerns of climate and development confronts policy makers.
The cost
Technology is a key component of the strategy to
decouple energy intensity and development, and can help enable a
future where energy needs and climate concerns are addressed
simultaneously.
Many technologies that have the potential to
provide solutions for low-carbon development are already available,
though several are not yet economically competitive.
Technology transfer has failed to kick-start and
government needs to play the role of the initiator and the catalyst.
This is particularly relevant for clean coal
technologies, and solar thermal and photovoltaics. The deployment of
photovoltaics in developing countries is often constrained by large
costs, but recent developments allow for reduction of per unit cost
of solar power.
A conducive policy environment is vital for
low-carbon technologies. Through targeted policy initiative and
enabling favorable conditions for research and development for
low-carbon technologies, the output in Japan’s industrial sector
nearly tripled between 1973 to the present—but kept its energy
consumption roughly flat.
Funds for mitigation remain an important
challenge. In 2030, macro-economic costs are estimated from a
3-percent decrease of global gross domestic product to a small
increase.
Oxfam International estimates poor countries
will need at least $50 billion a year to support adaptation measures
if current emission rates are to be stabilized.
Windows
The ongoing financial crisis affects not only
the overall availability of funds for climate adaptation and
mitigation, but also on reduced expenditure on R&D in clean
energy technologies.
Despite this, there are several opportunities to
integrate climate policy into mainstream economic policy, and it is
crucial to ensure that policy-makers make a conscious effort to
maximize and use these opportunities.
The United States stimulus package, for
instance, contains provisos for federal “green buildings” and
funding for renewable energy projects. According to a study by ICF
International, the $838-billion package would deliver a minimum
greenhouse gas savings of 61 metric tons per year, and could result
in deeper emission cuts.
The February 2009 “A Climate for Recovery”
report by HSBC analyzes 20 economic recovery plans, and estimates
that about 15 percent of the $2.8 trillion initiatives can be
associated with investments consistent with easing climate change.
China’s $221-billion stimulus plan involves
the largest outlay for such investments, with South Korea ranking
the first in the largest percentage (81 percent) of “green”
investments.
The growing concern over climate change has
ensured that climate concerns have made inroads into development
policy.
These indicate the various opportunities
available for no-regrets mitigation policies.
Global Policy Challenges: climate change and
sustainable development, ADB
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